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Computer prices to rise after Thailand flooding disaster, says UKITA director Chris Pallett

Press Release   •   Nov 02, 2011 11:15 GMT

The aftermath of severe flooding in Thailand is set to reach the UK as computer prices rise following the disaster, the Shropshire chairman of the Chartered Institute of IT warned today.

The country’s worst floods in more than half a century have claimed the lives of hundreds of people and affected millions. The disaster left 14,000 factories under water and more than 600,000 out of work.

And Chris Pallett, of Bespoke Computing Ltd in Telford and the Shropshire chairman of CIIT and director of the UK IT Association (UKITA), said the impact will be felt across the world.

He said: “Acer and Samsung have already said their prices are going to go up and the CEO of Western Digital, a major hard drive manufacturer, has said the concentration of its supply chain factories in various flooded industry parks in Thailand means it will be greatly impacted.

“Pricing is set to rise due to a number of factors including lower economies of scale, and increased logistical costs. Western Digital has so far been unable to specify the hike in average sales prices.

“On top of this technology prices are greatly influenced by the USD and Euro rates meaning businesses, now more than ever, need to think about their purchases. It will mean investing more to buy equipment that will meet their needs.”

Mr Pallett urged business owners to take independent advice before buying new equipment and to be aware of the changes – which will include shortages in equipment - before they make any decisions.

“Distribution giant Computer 2000 has put disk drives on manual allocation while other distributors have completely frozen sales while they review the impact of the flooding,” he added.

“It is already a tough time for businesses as the economy struggles and the rise in computer prices may well be harmful for companies making the wrong decision with the future of their IT.

“Some businesses may decide to upgrade or refurbish equipment to extend its lifetime, others can look at new technologies and servicing will become more important than ever.”

Bespoke Computing Ltd has access to all major brands and provides independent advice to companies large or small.

For more information visit www.bespokecomputing.com or contact 0845 004 3025.

The UK IT Association (UKITA) was established as the private sector organisation responsible for the development of a credible and thriving IT industry across the United Kingdom. Tracing its roots back to 1999, the name: United Kingdom IT Association (UKITA) was formally adopted in 2006.

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